MSC Software firms $305 million first-lien term loan discount at 99

By Sara Rosenberg

New York, May 28 - MSC Software Corp. finalized the original issue discount on its $305 million six-year first-lien term loan (B1/B) at 99, the wide end of the 99 to 99½ talk, according to a market source.

Pricing on the first-lien term loan remained at Libor plus 400 basis points with a 1% Libor floor, and there is still 101 soft call protection for six months.

The company's $435 million credit facility also includes a $10 million revolver (B1/B) and a $120 million seven-year second-lien term loan (Caa1/CCC).

The second-lien term loan priced in line with talk at Libor plus 750 bps with a 1% Libor floor and a discount of 99 and has call protection of 102 in year one and 101 in year two.

Jefferies Finance LLC is the lead on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

MSC Software is a Newport Beach, Calif.-based software company that focuses on multidiscipline simulation.

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